How will eProcurement save you money?

Reduce cost

An area of direct strategic involvement by procurement is to bring cost down. Trim fat!

If the goal of company is to trim fat, the e-procurement process does just that because it is designed to improve ordering process efficiency.

Eprocurement helps hold suppliers accountable. They have to answer specific questions and input information into your firm’s preferred format. They’ll have to dot their i’s and put the numbers in the right place or their RFx won’t go through the right way.

Remove the “wiggle room” of more traditional bidding. With e-procurement, your RFx can be structured in a way that removes any doubt on the suppliers’ end. When using e-procurement systems, vendors have to be more disciplined about the data and information that they provide. There is no room for stories and ambiguity.

Consolidate the supply base. It is easy to track supplier performance with an aim of working with optimum number of suppliers who provide best service in a category.

Tap into the e-auction trend. Suppliers go online and bid against one another in real-time. E-auction works best in situations where supply has outpaced demand like printing and stationery and IT equipment.

Leverage on data for planning. Using data generated by their e-procurement systems, electronics buyers can develop effective “what if?” scenarios that, in turn, can be used to make more efficient purchasing decisions.

Procurement Visibility

Time is ripe for procurement to move from back office to the front, it is time be seen and be heard. This they achieve through;

Collaboration: - Two minds are better than one, three are even better. This is why businesses are increasingly prioritizing collaboration across the entire organization. Procurement team should share their ideas openly and raise concerns on a regular basis.

Technology: - Many companies have migrated their business processes to the digital world. However, your suppliers are dragging you back because your interaction with them is still manual. If you’re one of the companies that still relies on paper orders and manual entries for procurement, update your process as soon as you can with help of SRMhub. Automation saves you money and time that is needed in more strategic areas of business. For instance savings through three way matching of invoice, POs and GRNs electronically is no brainer. There is no CAPEX requirement too.

Vendor Management: - You rely on vendors to provide the materials and services you need to take your business to the next level. This makes vendor management a top priority. Thus you can optimize your procurement process while reducing risks by tracking supplier performance.

Continuous Training: - Train every member of your procurement team to make sure they are familiar with the latest tools and technologies and have the skills necessary to thrive in their roles. Since technology evolves and industries change, make training investments on a recurring basis.